RAJENDRA KISHORE KSHATRI FOURTH SOUTH ASIA JUDICIAL ROUNTABLE ON ENVIRONMENTAL JUSTICE

Transcription

1 RAJENDRA KISHORE KSHATRI FOURTH SOUTH ASIA JUDICIAL ROUNTABLE ON ENVIRONMENTAL JUSTICE NOVEMBER 2015 KATHMANDU, NEPAL

2 Rivers: Perennial Sources of Energy 2

3 The Country: The Poli9cal Dimension Land locked Diverse Physical Characteris9cs Plains, Siwalik, Middle Mountains, High Mountains and High Himalayas 3

4 Status on Hydropower Development Potential Hydropower Capacity: MW Techno- economically Feasible : MW Total Installed Capacity:689 MW Per capita consumption: 106 kwh Import from India: max 236 MW min 180 MW Available energy at present: 716 MW Total peak demand in maximum: 1228 MW Total deficit in peak hour: 514 MW Projected Demand for 2027 in High growth Scenario: less than 7000 MW 4

5 PROSPECTS FOR HYDROPOWER DEVELOPMENT Energy is the power that drives the country s economy. Nepal has a huge hydropower potential. The perennial nature of rivers and the steep gradient topography provide ideal conditions for the development of hydropower. Only about 40% of Nepal's population has access to electricity. Electricity demand has been increasing in Nepal by about 7-9% per year. 5

6 PROSPECTS FOR HYDROPOWER DEVELOPMENT. The present per capita consumption of electricity is only 106 kw/h, which is the lowest one in the South Asian context. There is a power deficit in the country resulting in daily load shedding (the situation improving in the wet season and becoming bad in the dry season). Power shortage due to supply- deficit is likely to continue till at least Most power plants are run- of- river type. Seasonal variation stresses the need for storage projects. There is only one seasonal storage project in the system. 6

7 Climate response in the Hydropower Sector o Nepal is committed to sustainable development, in meeting the needs of the present without compromising the welfare of the future generation; o Micro- hydropower has the potential to fulfill a large amount of rural demand for energy; o The development of micro and small hydro is already in line with Nepal s development priorities; o It is best used when the larger part is consumed on the spot without the intermediary of electricity generation and transmission. 7

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9 Challenges for Hydropower Development Institutional reform including the restructuring of NEA remained a big challenge; Political commitment for reform in the sector is still dubious; Needs huge investment, the domestic investment is not sufficient; Numerous technical and non- technical risks and barriers do exist while developing hydropower; Legal and regulatory regime is yet to be improved according to the existing policy declarations. 9

10 Opportuni9es for Hydropower development India has a huge energy demand; Nepal s hydropower potential is largely undeveloped, if purposeful development is made it will be a major producer and exporter; It improves international trade balance, job creation and ultimately establish the reliable electrical system; It will develop successful trading within the SAARC region; Bilateral Power Trade Agreement with India and Framework Agreement on Energy within the SAARC created an environment for regional trade. 10

11 Government Policy Direc9ves The Government is pursuing hydropower development in Nepal from three different approaches: Firstly, to develop small/micro hydro projects to meet the local demands in remote and isolated regions; Secondly, to develop medium sized power projects to meet the national demand; and Thirdly, large- scale multipurpose projects to meet the regional demand for food, energy and flood control 11

12 NEW Policy Ini9a9ves Develop cost-effective small and medium hydropower to meet domestic demand at an affordable price. Encourage private sector investment in hydropower development and power distribution. Provide increased government support to accelerate rural electrification. Integrate improved social and environmental mechanisms into hydropower development. Encourage power based industries and transportation systems to create markets for large hydropower generation plants. 12

13 INSTITUTIONAL REFORMS Facilitate the flow of funds from the domestic financial sector to the hydropower sub-sector Strengthen present institutional and physical infrastructure for power export. Promote hydropower research and development Restructure the power utility company Establish Power Trading Company 13

14 Hydropower in a commercial sense Hydro industry in Nepal is in a state of transition; It is immature in a commercial sense though it is a mature technology; Its development and operation is regarded as public services in general; This understanding made every deals disputable; No single bilateral agreements or decisions were out of the court and executed smoothly in the past; In most occasion development efforts are confined. 14

15 Enormity of the Problem Power generation is adversely effected by inadequate transmission capacity; It is not practically matching to the generation planning and load requirement; Power evacuation is turning to be a bigger problem than power generation; Some project is running below capacity owning to transmission bottleneck; Without serious and timely reforms in transmission sector, the country runs the risk of adverse spiral effect on rest of the power sector. 15

16 Role of the Judiciary The hydroelectricity was not recognized as a trading commodity; Hydropower development and operation is largely recognized as public service; The Constitutional provisions were interpreted very conservatively and remained a very torment provisions; Rt. Hon ble Chief Justice Kalyan Shrestha in his reasoned deliberation in the Case of West Seti Hydropower Project recognized hydroelectricity as a tradable commodity; This remains historic decision towards reform and it allows to identify other current issues and challenges to develop suitable solutions other than for legal quarrels to continue. 16

17 THANK YOU 17